Investigation: The Competition Authority has initiated High Court proceedings against the Irish Medical Organisation (IMO) over its alleged involvement in fixing prices for certain services provided by doctors.
The legal action against the IMO, which represents about 6,000 doctors including 2,000 GPs, follows a lengthy investigation by the Competition Authority. Last year, as part of its investigation, it raided the offices of the IMO in Dublin and seized some documentation.
Its investigation has centred on the fees charged for medical reports on patients, typically requested by life insurance and financial companies. With the rise in the number of such reports sought in recent years, it has become a lucrative area for doctors. The doctors' fees are paid for by the insurance companies rather than patients, and the lack of difference between doctors' charges for these reports was central to the investigation.
The IMO would not comment on the case against it last night. It said: "As the matter is sub judice, the Irish Medical Organisation has nothing further to say."
It emerged last month that the Competition Authority was threatening the IMO with legal action. Then yesterday the authority confirmed in a statement that it had "initiated proceedings in the High Court against the Irish Medical Organisation. The Competition Authority has taken this action in relation to the role of the IMO in a dispute concerning the fees paid by life insurance companies to GPs for certain types of medical information," it said.
"The Competition Authority began its investigation in February 2005, following a complaint received during a fees dispute between the IMO and life insurance companies. The dispute centred on the fees paid by life insurance companies for two types of medical information, specifically, Private Medical Attendant's Reports [ PMARs] and medical examination reports. The Competition Authority's investigation focused on the period between June 2004 and June 2005," it said.
Critically, it said the Competition Authority had taken the view that the IMO's conduct had the object or effect of preventing, restricting or distorting competition in the market for medical information and in the market for life insurance in contravention of section 4(1) of the Competition Act, 2002.
"The Competition Authority's investigation has concluded that during the course of the fee dispute, the IMO co-ordinated the behaviour of its GP members. This co-ordination included directing or recommending the fees GPs should charge for PMARs and medical examination reports. The investigation also concluded that the IMO directed or recommended to GPs not to provide PMARs or medical examination reports unless life insurance companies paid the recommended fees," its statement said.
The Competition Authority is seeking from the High Court a declaration that the IMO's conduct was in breach of the Competition Act, 2002; a permanent injunction preventing the IMO from engaging in similar conduct in the future; and the costs of the proceedings.
The role of the Competition Authority is to investigate potential breaches of competition law and to bring potential breaches of competition law before the courts. But it is a matter for the courts to adjudicate on the merits of a case and the authority has said "no assumption of unlawful conduct should be made unless a court decision to that effect has been made".